Case Studies

Who would fund a construction company in CVA? The Water Services Company

This £1 million facility was written as a customised factoring solution deal, and customised to the client It certainly was – incorporating turnaround strategies and an element of construction finance facility to meet the clients needs.

The Client came from an ID facility and had entered into a CVA that the outgoing funder did not wish to support under its existing structure. At the point of exit the company was limited by cash availability, the client and ABL’s ledgers did not reconcile and debts were not being chased.

There were three ledgers covering simple sale and forget, applications and project work. It was agreed that a highly transparent approach was required for both sides and a full factoring facility was provided with a blended rate and prepayment across the three ledgers to maximise cash availability. In only two weeks the ledger improved dramatically and cash is flowing smoothly and the company is again able to concentrate on the operation and development of the business. A success story all round. A happy client, lender and Supervisor under the CVA.

Only one week to save jobs Branded Work-wear Company

One of Pulse’s real USP’s is its ability to complete a deal at breakneck speed. This required a turnaround in one week from enquiry to pay out as the business entered a pre pack administration whereby the outgoing lender could not support the financing of the newco.

A £50,000 facility was required for newco for working capital purposes. The old co had taken a big hit from a bad debt which left it unable to meet its liabilities and an administration was the only credible course. However, there was an essentially good underlying business and workforce which we were keen to support. Fortunately, the company’s accountant was aware of Pulse’ ability to turn around transactions quickly and support businesses in testing conditions.

Needless to say, with the help of the business, we completed the deal in one week and look forward to supporting them going forward.

Three days to refinance and reverse an HMRC Winding up petitionSecurity Services Company

Sometimes it’s a mystery that businesses are pushed into a position when they have only three days remaining to survive, and there is sufficient within the business to be turned into a going concern.

We needed to take out an existing lender and have a winding up petition dismissed otherwise administrators would be appointed all within three days of enquiry . The company faced this petition from HMRC and the lender was not minded to assist and was managing an exit position thus cutting off any cash which might have assisted in keeping the Revenue at bay.

A £500,000 full factoring facility was sanctioned on a blue chip and fully verified ledger. A good up to date ledger is the first thing we consider in turnaround situations and this qualified with flying colours. With the support of the directors, the three day requirement was met and we not only paid out the incumbent lender, but there was sufficient in the ledger to repay HMRC arrears and current exposure in full and the winding up position was dismissed. In the end, a close shave, but winners all round and a business worth supporting in future.